Localfund.com - All about Fund and Investment
*Home>>>Angel Funds

Do venture capitalists want their money back once the company gets established?


What happens if a VC funds a venture and the venture fails or does not make any money? Does the VC expect his/her money
back?
How about an angel?

Get rich quick schemes in the capitalist business world, (buyouts, IPOs, conglomerates, acquisitions, mergers, and the stock market), do not actually work. Remaining solvent does not actually exist within false economics capitalism.

Profit existing in the capitalist business world, or millionaires existing within capitalism, is pathological deception committed by the 21 organizations spying on the population with plain clothes agents, (with covert fake names and fake backgrounds).

Actual economics is the persons paying the monthly business loan payments of companies voting at work in order to control the property they are paying for.

Capitalism is the psychology of imaginary parents, false economics, and the criminal deception of employees that are paying the bills (including the stocks and bonds, or shares) of companies.

Anti-democracy republicanism is the psychology of imaginary parents, and false government.

For VC's the company they buy is a tool to get the best ROI.
Generally they want controlling interest. They buy companies with low debt, load up the company with new debt and use the proceeds to finance their purchase. The next decision is weather to liquidate the company or send in some hard nosed managers to squeeze the maximum profit from the company.
Eventually the company gets sold either as a going concern or in a liquidation, depending what gives the best return on their investment. The VC is not in business to make loans so there is no money to be paid back as you can see from the foregoing.
An angel investor is a different story. He'll give you money either for equity or as a loan, he expects to make money on his investment. his objective is to help the company get ahead and make money for himself at the same time.

The VC will be part owner of the Co, sometimes owning as much as 50% of the Co . They will have a say in how the Co is run. The VC will be watching his money VERY closely. The VC has to be convinced the Co will work upfront and will make money, an exit strategy!
An Angel is usually an individual investor who invests less than 100k in a startup. Same deal, will want to own up to 50% of the Co stock.

Tags
  Business financing   Business Invest   Business Debt   Bond Investment   Angel Funds   Alternative Investment
Related information
  • Where can I find Start-up capital for my business ?

    Honey, dont fret!! Your government can help. go to your local SBA small business administration dept. if you qualify, they help you start up with a loan with a very affordable low interest...

  • What does it take to start this business???

    The first thing anyone interested in lending money to start a business is going to ask for is a business plan. They want to see how he expects to run the business, how much money he expects to mak...

  • I'm currently temping and working with a lady who is very quiet. She doesn't say much?

    sounds like it could be much, much worse. just relax and don't worry about the silence. you are the visitor, so to speak, and you have to adapt to the existing work environment.

    ...
  • How one can get an investment?

    National Venture Capital Assoc. ...

  • How can I find investors for frelance business with poor credit ?

    Hello, Usually the fastest way to turn cash is to sell stuff. Buy at Wholesale, Sell at Retail. Working from home is the ideal spot (no commute and low overhead - 2 advantages) - all possible ...

  • Why do angels look like animals?

    i wouldnt no the only 1 i seen was to bright to see

    ...
  • How many angels appeared to the shepherds?

    Initially, just one. Luke 2:8-9: "And there were in the same country shepherds abiding in the field, keeping watch over their flock by night. And, lo, the angel of the Lord came upon them, ...

  • Was pretty_angels' recent What should i do??qu harshly answered by neparis2001 just because she's foreign?

    I am so sorry, but I don't know what the answer was, I'll try to look it up and see. I'll edit my answer if I can find it.

    ...
  •  

    Categories--Copyright/IP Policy--Contact Webmaster